Reduction of ‘unfair subsidy’ welcomed

Wednesday 11th April 2007, 12:00AM BST.

A REDUCTION in the UK’s multi-million pound VAT subsidy to the Isle of Man means fairer competition in the finance industry, according to Chief Minister Frank Walker.

The ‘common purse’ deal that pools VAT receipts from the UK and Isle of Man, and then determines a payment to the Isle of Man government, is being changed after criticism that the Manx treasury received much more than it was putting in. Senator Frank Walker says that although the £270m figure for the subsidy quoted recently by the Tax Justice Network was a gross exaggeration, there would be a ‘significant reduction’ in Isle of Man tax receipts. He added that the phasing out meant that there would be more of a ‘level playing field’.

Read the full story in the Jersey Evening Post. Click here for subscription details. Individual editions are also available online.